On November 8, 2022, the Postal Regulatory Commission approved new U.S. postage rates set to take effect January 22, 2023. The rates most relevant to direct mailers are outlined below.
In this blog, we look at the forces driving this latest rate adjustment and offer a path to mitigating cost impacts. We also give insight into future increases.
USPS Forging Ahead… for Now
This latest rate adjustment is in keeping with USPS’s previously announced plan to raise rates twice a year through 2024 to address chronic funding shortfalls. However, those plans were devised when the USPS was operating under a vastly different set of regulations, especially concerning their financial obligations. With the passage of the Postal Reform Act of 2022, a significant drain on USPS finances was essentially resolved, leaving the Service in a much better financial position.
The rationale for the size of this latest increase has been laid at the feet of inflation, i.e., costs over which the USPS has no control. That “some industries are beginning to show signs that inflation is easing” is welcome news in general. What, if any, effect is will have on the announced rate adjustment scheduled for July of this year remains to be seen.
Here are the rate increases most directly tied to direct mailers.
| Category | Average % Increase |
| General increase | 4.2 |
| Retail First-Class Letter & Postcard | 5.1 |
| First-Class Presorted Letter & Postcard | 3.6 |
| First-Class Flat | 6.2 |
| Marketing & Non-Profit Letters | 3.3 |
| Marketing & Non-Profit Flats | 6.3 |
For an overview of all the major postage price increases, access our 2023 Postage Rates Sheet.
Act Now to Protect Your ROI
This latest postage increase, coupled with other inflationary costs, has marketing budgets under intense pressure. Fortunately, there are concrete postage optimization steps marketers can take now to mitigate these increases.
Access the “2023 Postage Outlook for Direct Mailers” for underutilized steps to increase your return on direct mail spend.
